In this article, we discuss the top 5 stock picks of Glenn Greenberg’s Brave Warrior Capital. If you want our detailed analysis of Brave Warrior Capital’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stock Picks of Glenn Greenberg’s Brave Warrior Capital.
5. Primerica, Inc. (NYSE:PRI)
Brave Warrior Capital’s Stake Value: $263,439,000
Percentage of Brave Warrior Capital’s 13F portfolio: 9.04%
Number of Hedge Fund Holders: 13
Primerica, Inc. (NYSE:PRI) and its subsidiaries offer financial solutions to middle-income families in the United States and Canada. Term Life Insurance, Investment and Savings Products, Senior Health, and Corporate and Other Distributed Products are the company’s four business segments.
According to Insider Monkey’s data, 13 hedge funds were long Primerica, Inc. (NYSE:PRI) in Q2 2022, with combined stakes worth $352 million. Israel Englander’s Millennium Management is one of the major stakeholders of the company, with 452,728 shares worth $54.1 million.
Here is what Baron Growth Fund has to say about Primerica, Inc. (NYSE:PRI) in its Q1 2021 investor letter:
“While the market was focused on cyclical stocks during the quarter, we remain excited about the sustainable growth prospects of our secular growth-oriented portfolio over our five-year investment horizon. We believe that end-market conditions are improving for almost all our investments, most notably for those that did not benefit from a COVID-driven tailwind last year. We expect Primerica, Inc. to benefit from the recent rise in interest rates, as its investment portfolio generates more compelling returns and its fixed income products offer better yields.”
4. Lithia Motors, Inc. (NYSE:LAD)
Brave Warrior Capital’s Stake Value: $272,419,000
Percentage of Brave Warrior Capital’s 13F portfolio: 9.35%
Number of Hedge Fund Holders: 40
Lithia Motors, Inc. (NYSE:LAD) is a car dealership in the United States. The business is divided into three divisions: Domestic, Import, and Luxury. Brave Warrior Capital owned 991,301 shares of Lithia Motors, Inc. (NYSE:LAD) as of August 15, worth $272.4 million, and representing a 9.35% chunk of its 13F portfolio’s weighting.
On July 15, JPMorgan analyst Rajat Gupta reduced the firm’s price objective for Lithia Motors, Inc. (NYSE:LAD) from $380 to $325 and maintained an Overweight rating on the stock.
Among the hedge funds tracked by Insider Monkey, 40 were long Lithia Motors, Inc. (NYSE:LAD) in Q2 2022, with combined stakes worth $2 billion. David Abrams’ Abrams Capital Management is a leading position holder in the company, with 2.3 million shares worth $646 million.
3. Fidelity National Financial, Inc. (NYSE:FNF)
Brave Warrior Capital’s Stake Value: $337,056,000
Percentage of Brave Warrior Capital’s 13F portfolio: 11.57%
Number of Hedge Fund Holders: 36
Fidelity National Financial, Inc. (NYSE:FNF) and its subsidiaries offer a variety of insurance products in the United States. The firm operates in three segments: Title, F&G, and Corporate segments.
According to Insider Monkey’s data, 36 hedge funds were bullish on Fidelity National Financial, Inc. (NYSE:FNF) in Q2 2022, down from 38 funds in the prior quarter. Israel Englander’s Millennium Management featured as one of the largest stakeholders in the company, with 3.17 million shares worth $117 million.
2. Apollo Global Management, Inc. (NYSE:APO)
Brave Warrior Capital’s Stake Value: $360,110,000
Percentage of Brave Warrior Capital’s 13F portfolio: 12.36%
Number of Hedge Fund Holders: 61
Apollo Global Management, Inc. (NYSE:APO) is a private equity business that specializes in credit, private equity, and real estate investments. As of Q2 2022, Brave Warrior Capital owned 7.4 million shares of Apollo Global Management, Inc. (NYSE:APO) worth around $360.11 million, representing 12.36% of its total 13F holdings.
According to Insider Monkey’s data, 61 hedge funds were long Apollo Global Management, Inc. (NYSE:APO) in Q2 2022, down from 64 funds in the preceding quarter. Robert Joseph Caruso’s Select Equity Group is the second leading stakeholder of the company, with roughly 4.9 million shares worth $238 million.
1. Elevance Health Inc. (NYSE:ELV)
Brave Warrior Capital’s Stake Value: $584,538,000
Percentage of Brave Warrior Capital’s 13F portfolio: 20.06%
Number of Hedge Fund Holders: 74
Elevance Health Inc. (NYSE:ELV), formerly known as Anthem, Inc., is a health benefits provider. It assists consumers, families, and communities along the care journey by linking them to the care, support, and resources they need to live healthy lives.
Among the hedge funds tracked by Insider Monkey, 74 funds were bullish on Elevance Health Inc. (NYSE:ELV) in Q2 2022, with a collective stake of around $5.22 billion. Jean-Marie Eveillard’s First Eagle Investment Management is a major shareholder of the company, with more than 2.01 million shares worth $970 million.
Here is what Baron Health Care Fund has to say about Elevance Health Inc. (NYSE:ELV) in its Q1 2022 investor letter:
“We initiated a position in Anthem, Inc. (NYSE:ANTM) (which recently announced plans to change its name to Elevance Health Inc. (NYSE:ELV)), one of the largest health benefits companies in the U.S. in terms of medical membership, serving more than 45 million medical members through its affiliated health plans. Anthem serves its members through the Blue Cross and Blue Shield brand name. Similar to many managed care peers, Anthem generates its revenue from the U.S. (which avoids risks related to foreign country exposure) and has pricing power (which enables it to more than offset inflation). More specific to Anthem, the company has multiple growth drivers, including its Medicare Advantage business, its in-house pharmacy benefit management business, and its Diversified Business Group, which includes behavioral health, advanced analytics, and complex and chronic care services. Over the long term, management targets 12% to 15% annual EPS growth. We think Anthem is a high-quality growth company trading at a reasonable valuation.”
You can also take a look at the Top 10 Stock Picks of Mark Kleiman’s Factorial Partners and Top 10 Stock Picks of Minerva Advisors.
